Alpha Company has 10 work stations where work in process is held, 100 average units in...

  

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Alpha Company has 10 work stations where work in process is held, 100 average units in work in process per station, an average cost of a unit in work in process of P75, and an annual inventory carrying cost of 20%. If Alpha plans the the work in process level be reduced to 40% , the expected annual savings in carrying costs would be: Alpha Company has 10 work stations where work in process is held, 100 average units in work in process per station, an average cost of a unit in work in process of P75, and an annual inventory carrying cost of 20%. If Alpha plans the the work in process level be reduced to 40% , the expected annual savings in carrying costs would be:

Answer rating: 100% (QA)

P 15 000 The calculation is as follows 10 work stations x 100 average un... View the full answer